Major Japanese Carmakers to Halve Output in China

Toyota, Nissan and Honda plan to slash their production in China by about half after strong anti-Japan sentiment devastated their sales there in September, The Nikkei reports.

The Tokyo-based newspaper, which doesn't cite its sources, says each carmaker will build 30,000 to 40,000 fewer vehicles per month under the new production schedules.

Toyota and Honda will shrink output by slowing line speed and reducing work hours, according to The Nikkei. It says Nissan is suspending night shifts at its two Chinese plants.

Japanese carmakers idled their factories in China for several days last month after massive protests against Japan's assertion of control of a small island chain in the East China Sea.

Japan's Big Three automakers have not yet reported September sales results for China. But an unidentified company executive tells Reuters that Toyota sold about 50,000 vehicles in China last month, down 42% from September 2011.

Japan's smaller carmakers have reported huge year-over-year declines in Chinese sales last month, including Fuji Heavy Industries' Subaru brand (-65% to 1,900 vehicles), Mitsubishi (-63% to 2,300 units) and Mazda (-35% to 13,300 units).